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Thread: Whistleblower. Something truly rotten in the banking sector. Silence from our politicians!!!

  1. #1
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    Thumbs down Whistleblower. Something truly rotten in the banking sector. Silence from our politicians!!!

    Credit to bokonon for finding this.....hope you don't mind me for giving it a thread of it's own. This is massive.

    Whistleblower.....

    Ireland is having relinquish its hard-fought sovereignty as a result of a complete breakdown of banking law enforcement and repeated attempts to cover-up the ineptitude of the government and the regulator.

    I am the person referred to in Senator Norris' statement below. Norris is an independent senator with no party affiliation.

    I resigned from my position as the risk manager of a foreign bank operating in Dublin in 2007. We breached minimum liquidity requirement by BILLIONS of Euro on a regular basis. I made sure the Regulator was notified at least on one such occasion.

    In his statement to the Irish Seanad (Senate) in February this year, Senator Norris concluded:

    "...I would like her [Deputy Brady] to take the message back to the Minister for Finance, Deputy Brian Lenihan, that there is ministerial responsibility in this matter. This is a grossly serious matter which has been reported to the Financial Regulator. A man has lost his job as a result. He honourably resigned. The degree of breach was 40 times the accepted margin. This is a disaster. If we are not prepared to face the issue and investigate it when it has been laid before the House, there is absolutely no hope for the financial system or its reputation worldwide. I accept and understand it is not possible to anticipate what I will say in a debate; therefore, I will excuse the reply on that basis. However, I have made very clear requests that this matter should be examined. How can the Financial Regulator investigate himself? He was in breach of his responsibility. That is the first point.... It is not too much to ask in this Parliament that this should happen. I want the process to start tonight.... ."

    I have brought the matter to the attention of several senior TDs (MPs) and Senators at all the major political parties; alas, silence prevails.

    Whilst the catastrophic over-night breach that I had reported to the Regulator could have been theoretically remedied immediately, it is virtually impossible for it to have been a 'once-off' event, had we been abiding by the terms of our banking license. Chaos prevailed and by the time the Regulator's team arrived for a scheduled audit, they made sure that communication with the London consultancy whom I had brought-in to sort out the mess, was promptly cut-off. By then, I was no longer attending the office, but was on 'garden leave'.

    Although my position had been confirmed by the bank's board of directors only shortly before my resignation, and my resignation clearly stated that it was due to integrity issues at the bank, the Regulator's team made no attempt to contact me then, or at any time since then.

    The official protocol of Norris' statement is available under 'Financial Regulation' (3rd from the end of the list) at:

    http://debates.oireachtas.ie/DDebate...=1&Ex=743#N743

    The workings of Ireland's Financial Regulator are best displayed in the following example from the actual regulation in relation to liquidity management. This is the link to the 2006 legislation that came into force in 2007, as seen in paragraph 9.4 Implementation (page 27 of pdf):

    http://www.financialregulator.ie/ind...ity%20Risk.pdf

    Having failed completely at enforcing his own regulations, the Regulator then re-issued the above regulation in June 2009. Although the preamble refers to Banking Acts dating as far back as 1942, there is no reference to the fact that these liquidity requirements came into force in 2007. Here is the link to the 'new' regulation. The person who can find paragraph 9.4 in this document might also be able to find Ireland's missing billions (observe pages 28-29 of the pdf file):

    http://www.financialregulator.ie/ind...09%20Final.pdf

    Parag. 10 which stipulates possible imprisonment penalties for breach of liquidity regulations remains unchanged. Ireland is now on the verge of financial meltdown due the most severe liquidity crisis it has ever faced, yet not a single executive has been put in prison.

    The only specific response by official Dublin to Norris' allegations appeared in the Business Post:

    http://www.thepost.ie/story/eysncwauoj/

    The Regulator's records differ; quelle surprise?
    Whistleblower continues....

    PS to my comment above:

    1. In his reply to Senator Norris, Minister Lenihan referred to Ireland's reliance on ECB funding through-out the liquidity crisis, in return for which Ireland was offering full cooperation with Eurozone countries. However, although Minister Lenihan was provided by Senator Norris with the name of the offending bank, Minister Lenihan did not give any indication that the authorities in the central-European country in which the parent bank is domiciled were informed of this calamitous breach. Surely, had Minister Lenihan, or the Irish Regulator, informed their continental counterpart of this incident, they would have been eager to state that on record?

    Sachsen Landesbank and Hypo Real-Estate (Depfa) Bank both neared collapse on account of their mismanaged and poorly regulated Irish operations. LBBW Bank and the German taxpayer, respectively, will be paying for these fiascos for years to come. Would it not have been proper order for Minister Lenihan to ensure that the failings of this yet-to-be-named Dublin-domiciled bank, which is part of one of the largest banking groups in central Europe, to have been brought to the attention of its regulating authorities? Perhaps that would just have been too embarrassing; it was bad enough that an ex-governor of the Central Bank of Ireland sat on Depfa's board of directors when it was about to go under:

    http://www.irishtimes.com/newspaper/...261527333.html

    Derek Scally, The Irish Times correspondent to Berlin, wrote last August:

    "...as long as things weren’t broken, no one saw a need for a fix. An unholy trinity of events changed that, beginning in September 2007.

    After years of record returns, Saxony’s Sachsen LB state bank realised its Dublin-based subsidiaries had been gambling off the balance sheet and needed €17 billion overnight to save the entire group from collapse. A second pile of debts worth €600 million were subsequently uncovered.

    A whip-around from Germany’s banks saved the day, and a fellow state bank eventually bought the Saxon operation. But the near-disaster meant years of gossip about the IFSC [Irish Financial Services Centre, WhistleblowerIRL] in Germany turned into open speculation about the veracity of Dublin’s reputation as a serious financial marketplace.

    Then in June 2008 the Irish rejected the Lisbon Treaty, a document the average German had never read or heard of. No matter: the No was perceived here as a slap in the face from Irish ingrates to generous Germans, a view which, when fixed, was impossible to shift.

    Four months after Lisbon, Ireland was back in the German headlines after the IFSC-based Depfa bank, a subsidiary of Munich’s Hypo Real Estate (HRE) property lender, ran out of funding and required a package of emergency loans and guarantees that would eventually top €100 billion. Amid a huge political scandal in Germany, HRE was finally nationalised."

    http://www.irishtimes.com/newspaper/...276713254.html

    2. A prominent member of one of the opposition parties recently said to me - "we can't afford the consequences of revealing this story, we already have enough to deal with if we come to power".

    3. The only people who are paying the price for the crimes committed by bankers and the Regulator, with the blessing of the government, are my fellow Irish citizens - the young who are forced to leave the country by the thousands, the families who can not afford the next mortgage payment, and the elderly and infirm who await their misfortune with horror.

    Messrs Cowen, Lenihan and Honohan, I wonder if you sleep well at night. Very few of us do.
    Last edited by C. Flower; 19-11-2010 at 01:34 AM.

  2. #2
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    Default Re: Whistleblower. Something truly rotten in the banking sector. Silence from our politicians!!!

    And thanks to you Newsy, for posting this thread.

    Whistleblower added this today


    • WhistleblowerIRL

      18 November 2010 12:45PM

      In an address to the Irish Senate on 23 Feb. '10, Senator Norris discussed a series of severe breaches of liquidity requirements at a European bank operating in Ireland in 2007. He said that the bank was “one of the European banks with its Irish headquarters in the Irish Financial Services Centre” (IFSC) in Dublin.
      In her reply on behalf of the Minister of Finance, Mr. Lenihan, Deputy Brady stated that “Robust liquidity management within individual institutions is also essential in order to maintain stability in the financial system as a whole...” and that “The supervision of liquidity requirements for credit institutions licensed and operating in Ireland is primarily a matter for the Central Bank and the Financial Regulator”.
      In petitioning the European Commission to approve the NAMA legislation, the Irish Government stated that this was required in order to stabilize the acute condition of the Irish financial system. As Deputy Brady stated “Irish credit institutions and many European credit institutions have obtained liquidity support provided by the bank” [the ECB].
      Now that the ECB/IMF is once again providing contingency funding to the Irish banking system, is Governor Honohan in a position to confirm that he has fully investigated the ongoing & severe liquidity breaches reported by Norris to Minister Lenihan?
      Deputy Brady stated on behalf of Minister Lenihan that “Breaches of liquidity requirements may be subject to proceedings under the Financial Regulator’s administrative sanctions procedure or to prosecution.” Can Governor Honohan please tell the Irish people how many banking executives have been prosecuted by now? Or is he still searching for evidence?
      Deputy Brady went on to state that "The Financial Regulator imposes quantitative and qualitative standards for liquidity for all credit institutions that it supervises, be they credit institutions operating in the domestic market or those operating in international markets. These standards are outlined in the Financial Regulator’s document, Requirements for the Management of Liquidity Risk, and have been formally imposed as a condition on the licence of all credit institutions. The Financial Regulator also has a role in monitoring the functioning of liquidity within branches of credit institutions operating in Ireland where these are supervised by their home country regulator. The Financial Regulator maintains close communication with the regulators of other member states for this purpose."
      Governor Honohan, may I therefore conclude that the breach that I reported to the Regulator has been brought to the attention of the regulator in the relevant "other member state"? We are talking here of breaches of 20-40 times the permissible deviation according to the Regulator's own regulation.
      Perhaps Minister Lenihan decided to dispense with formalities and use the opportunity of his visit to Brussels this week to whisper in the ear of the relevant Finance Minister. As the noose tightens around Ireland's neck, it would be nice to think that Minister Lenihan gave the other finance minister at least a token warning that the biggest bank in this continental European country does not seem to know that its Dublin bank was missing BILLIONS in its 'petty cash' till. Had I not delivered the letter myself to the Regulator's office on Dame street and received the confirmation from the Regulator that he has been made aware of this breach, I would not believe it myself...
      So, Messrs Lenihan & Honohan, as you await billions more in bailout money for our country, will you at least show courtesy towards your counterparts in this other European country? Or will you continue your policy of "Lets wing it" a bit longer, in the hope that you will not be found out? After all, you did have some success in convincing Brussels at the time that NAMA would save us all from the Armageddon that we are now experiencing.
      Senator Norris' statement at the Seanad and Deputy Brady response on behalf of Minister Lenihan are available in my original postings (links below).

      THANK YOU to all of you who have sent me messages of encouragement and support, such as the ones below:
      "Extraordinary post. I'm sure you are just one among many who could tell the truth about what has happened in this country over the past 10 years. The problem is the conspiracy of silence and bullying behaviour by the banks and their friends the politicians..." - 'apatheticzealot'
      "Amazing stuff WhistleBlowerIRL - we need people like you to come forward if we're ever to dig ourselves out of this mess." - 'Griffitz'
      My original postings can be read at:
      http://www.guardian.co.uk/discussion...malink/8418258
      http://www.guardian.co.uk/discussion...malink/8418590

  3. #3
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    Default Re: Whistleblower. Something truly rotten in the banking sector. Silence from our politicians!!!

    Why doesn't this whistleblower contact this website and post it as we would be v glad to hear his comments if any??

    It could be that he isn't an Irish citizen but perhaps from an another country??

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    Default Re: Whistleblower. Something truly rotten in the banking sector. Silence from our politicians!!!

    Quote Originally Posted by disability student View Post
    Why doesn't this whistleblower contact this website and post it as we would be v glad to hear his comments if any??

    It could be that he isn't an Irish citizen but perhaps from an another country??
    The internet is international, and so is this forum . I hope we hear from him/her soon.

    We posted quite a bit about his case on some threads on the banking crisis -

    http://www.politicalworld.org/showth...rris#post43607

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    Default Re: Whistleblower. Something truly rotten in the banking sector. Silence from our politicians!!!

    Quote Originally Posted by disability student View Post
    Why doesn't this whistleblower contact this website and post it as we would be v glad to hear his comments if any??
    Why don't you ask him yourself?

    Code:
     My E-mail address is: Whistleblower.IRL@gmail.com
    Thus all which you call Sin, Destruction—in brief, Evil—that is my true element.

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    Default Re: Whistleblower. Something truly rotten in the banking sector. Silence from our politicians!!!

    Quote Originally Posted by TotalMayhem View Post
    Why don't you ask him yourself?

    Code:
     My E-mail address is: Whistleblower.IRL@gmail.com
    I have asked, and have had a friendly reply.

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    Default Re: Whistleblower. Something truly rotten in the banking sector. Silence from our politicians!!!

    From our Anglo Timeline -

    In 2007 a whistleblower went to the Regulator with concerns about a serious liquidity issue at an Irish subsidiary of a European bank. When nothing was done about it, he resigned, to protect his own legal position. From Kathleen Barringtons's blog.

    http://kathleenbarrington.blogspot.c...g-at-ifsc.html

    Also in May 2007, Cowen as Finance Minister introduced legislation that enabled Irish banks to increase their lending for commercial development...
    http://kathleenbarrington.blogspot.c...nks-folly.html
    Last edited by C. Flower; 05-12-2010 at 11:42 AM.

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    Default Re: Whistleblower. Something truly rotten in the banking sector. Silence from our politicians!!!

    I'm cross posting these posts from the Anglo Irish timeline thread as they all may help to build up a picture

    An interesting thread from the Pin, probing a little at the IFSC, AIG, Bruton et al.
    I'm still unconvinced that the Irish crash should be seen as entirely Irish.

    http://www.thepropertypin.com/viewto...p?f=19&t=30394

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    Default Re: Whistleblower. Something truly rotten in the banking sector. Silence from our politicians!!!

    I'm not sure if Whistblower was talking about a German bank. ang posted this on the Anglo Timeline thread.

    The IFSC basically want to manage their own affairs and are looking for a waiver from the financial regulator:-

    IFSC institutions and other wholesale international banks operating in Ireland will call on the Financial Regulator to waive new corporate governance requirements for wholly-owned subsidiaries whose parent operations have equivalent requirements in another country.
    The wholesale banks are also accusing the regulator of failing to meet basic standards of "necessary, targeted, transparent and proportionate" regulation, according to briefing documents seen by the Sunday Tribune.
    http://www.tribune.ie/business/news/...-rules-waiver/

    German Financial institutions are particularly bothered by the new regulations and their stance is either you meet our criteria or we pull out:-

    German banks and financial institutions will review their operations in Ireland if the Financial Regulator pushes ahead with controversial proposals on corporate governance, a powerful German industry lobby group has warned.

    Describing the proposals as ‘‘unfeasible and unviable’’, the German Irish Chamber of Industry and Commerce has told the Irish government that a number of its members had raised serious concerns about the proposals, and that they would review their investment in Ireland if they were insisted upon.

    The chamber said the proposals would rule out the eligibility of nearly all current chairs of companies in the IFSC, while also disqualifying the majority of current board members of IFSC operations.

    Without changing the proposals, the representative group warned that Ireland would ‘‘undoubtedly lose significant foreign investment’’ from banks and subsidiaries, and that its attractiveness to foreign investors would be diminished.

    In a letter to Taoiseach Brian Cowen, the German chamber said the proposals would also ‘‘result in a dramatic reduction in tax revenue and an increase in unemployment with little chance for employees’’.

    The group sent the letter to Cowen, following the publication last month of a consultation paper on corporate governance standards for banks and insurers.
    http://www.thepost.ie/story/text/eysngbojcw/
    Last edited by C. Flower; 19-11-2010 at 02:28 AM.

  10. #10
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    Default Re: Whistleblower. Something truly rotten in the banking sector. Silence from our politicians!!!

    Quote Originally Posted by TotalMayhem View Post
    Why don't you ask him yourself?

    Code:
     My E-mail address is: Whistleblower.IRL@gmail.com

    Thanks TM,

    He/she can be tracked via IP address as i would suggest him or her to be careful. He/she can use proxy to pass it on to others to shield him/her from pressures coming from the media or the govt.

    I will e-mail the person in question although i won't be expecting too much from that person concerned.

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    Default Re: Whistleblower. Something truly rotten in the banking sector. Silence from our politicians!!!

    Good to see a thread dedicated to this chap.

    He could have pocketed the cash and said nothing. It's excellent to see ethics outweigh corruption. We don't see that too often. And I'm sure that the time between his resignation and now, must have been hellish.

    Talking the talk is good. But I respect walking the walk more.

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    Default Re: Whistleblower. Something truly rotten in the banking sector. Silence from our politicians!!!

    This thread on Casey and the Anglo / ILP back to back loans, asking why the Government/Lenihan authorised issue of misleading accounts, strikes me as relevant, although not directly so, in the way that is shows how business is done.

    http://www.politicalworld.org/showth...1143#post41143

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    Default Re: Whistleblower. Something truly rotten in the banking sector. Silence from our politicians!!!

    Captain Con made this comment -

    Quote Originally Posted by Captain Con O'Sullivan View Post
    It would be some deck of cards if it was revealed that these mysterious bondholders in Anglo who FF are desperate to keep hidden turn out to be other European and US banks and all these banks were bondholder for each other.

    I still think the 'golden circle' were involved as bondholders but if Anglo were bondholders say in the other banks involved in the swap transactions then we're looking at potential fraud across the system.

    And by fraud I mean banks across borders pressurising politicians to bail out their own interests with public money in order to cover up a breathtaking scam.

    That resonates with me. Lenihan has always been adamant that non-Irish bondholders were involved with Anglo Irish.

    On the systemic nature of Anglo Irish in the Irish banking system - if, say, BoI and Allied Irish had put billions into Anglo Irish at the request of the Government, they would have made it systemic.

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    Default Re: Whistleblower. Something truly rotten in the banking sector. Silence from our politicians!!!

    It would seem corruption will be found in the banking sector:-

    THE EU-IMF investigators will uncover significant fraud and corruption in their examination of the Irish banking sector according to a leading European economist who worked with the IMF.
    Dr Daniel Gros believes that when the crisis is over the country will need a ‘truth commission’ similar to that established in Iceland to investigate and analyse the collapse of the banks and the lead-up to the catastrophic event.

    Iceland found that senior politicians, regulators and bankers were all at fault for bringing down the country’s economy.
    http://www.examiner.ie/ireland/eu-im...on-136936.html

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    Default Re: Whistleblower. Something truly rotten in the banking sector. Silence from our politicians!!!

    Quote Originally Posted by ang View Post
    It would seem corruption will be found in the banking sector:-



    http://www.examiner.ie/ireland/eu-im...on-136936.html

    "When the crisis is over..."

    Nice one.

    This is a link to other posts here on arrangements with German banks.
    I doubt that this side of things will be over exposed until "the crisis is over"

    http://www.politicalworld.org/showth...rris#post43607

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